Can blender game engine hide vertices that are not visible to the camera?
Yes, it can. This is done by using the Occlude physics type; this makes an object hide all other objects (or parts of objects) behind it. This does, however, mean that it can only be applied to Static (physics type) objects, since an object can't have two physics types, and the Occlude type works like the Static type (i.e. it doesn't move).

Keep in mind that:


  
  If the occluders are small and don't hide many objects.
  
  In that case, occlusion culling is just dragging your CPU down).
  
  If the occluders are large but hides simple objects.
  
  In that case you're better off sending the objects to the GPU).
  
  


You can read the wiki for more details about performance.